Trade Exit – HEAR Diagonal Call Spread

Stock / Symbol: Turtle Beach / HEAR
Strategy: Diagonal Call Spread
Trade entry date: 11 Jan 2021 / $20.70
Price at this post: $22.46

Update: With HEAR trading up and over the strike of our short leg of this Diagonal Call Spread, we're going to enter in our exit order now. This position's current Greeks are: -10.5 Delta, 5.0 Theta, and 4.3 Vega. Another indicator that it's time to exit this trade is the shift from long Delta at 26.9 to short Delta at -10.5.

Trade Exit Order:
STC 1 HEAR 16Jul21 17 call
BTC 1 HEAR 15Jan21 21 call

For a min net credit of $5.90 per contract (GTC order, limit order). The mid is currently at a credit of $5.80. I have not yet been filled.

Analysis:

Max Risk: $565
Max Reward: $60 or 10.6% with HEAR at $21 on Jan 15th
Profit Range: HEAR between $20.20 and $24.00 on Jan 15th
Estimated Commission (round trip): $2.60
Downside Stop at: $15.95
Anticipated Profit / Loss upon fill: $25 or 4.4% (pre commission)

Positive Theta

Leave a Reply

Your email address will not be published.